How to Buy an Oil Well


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How to Buy an Oil WellInvesting in oil wells is one opportunity that ought to be on everyone’s radar. Without a doubt, stocks and bonds and more recently opportunities like Forex and binary options are well worth the look. However, so long as balancing risk and reward goes, oil wells are among the finest options available in the market these days, especially if one is keen on diversifying his assets. There are numerous opportunities for growth with oil wells.

Where to purchase an oil well

Oil wells may be purchased from oil producing nations like Nigeria, Iran, Saudi Arabia, Libya, Iraq, Kuwait, and Russia. You can also purchase from other oil-producing countries all over the world. Offers for the sale of oil field are often published every once in a while. Oil well price is fixed based on the millions of barrels in the well. Offers for the sale of oil fields are generally publicized. You could find prices starting from $250,000 to $950 million (USD) all prices are subject to the quantity of oil inside the well. Areas, where you stand likely to get oil fields for sale in USA and Canada, are Ohio, California, Texas, Alberta, Oklahoma, Kentucky, and Kansas.

All oil producing countries have their specific procedures for selling discovered oil wells to investors who intend to reap the benefits of the crude oil inside it and sell. This article will talk mostly with regards to the process of buying oil field from Nigeria. Nigeria is similar to several oil producing countries.

Nigeria

In Nigeria, your starting point to buying an oil well must begin from the office of the Ministry of Petroleum Resources whose office is situated at Abuja Nigeria’s capital city. Nigeria has above 1481 discovered oil fields with billions and billions of oil reserves. There are also ones that are yet to be uncovered. Hence there is a huge opportunity for the sale of an oil block in the country.

If you cannot pay a visit to the ministry of petroleum resources to demonstrate your interest to purchase oil field, you can make use of private third-party firms. Third party companies can tell you about producing oil wells in Nigeria for sale once they become available.

Purchasing an Oil Well

The steps involved in purchasing oil wells are very simple, and it is similar to the purchase of crude oil. The initial clause demands the buyer to offer LOI which will undoubtedly be in the name of the seller. As soon as the seller reviews it and considers it feasible, the seller would bring it back with an offer letter. The paperwork of the block also is issued to the buyer for verification purpose. First, the buyer confirms the documents and is comfortable with the verification process. The subsequent step is to meet face to face with the seller, usually referred to as the allottee. After successful dialogue has occurred between the two parties, then the Sales agreement would be signed by the two principals. Payment would be done, and the transfer of ownership of the oil well would take place.

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